Morocco: Government Allocates 20 Billion Dirhams to Support Purchasing Power in 2026

The Moroccan government has decided to allocate an additional 20 billion dirhams in the 2026 budget to strengthen mechanisms supporting purchasing power and to address international economic and geopolitical tensions.

This decision was announced by the Minister Delegated for the Budget, Fouzi Lekjaa, during recent statements before Parliament, in a context marked by volatility in energy prices and imported inflationary pressures.

A Budget to Mitigate Economic Shocks

This budget extension is primarily aimed at absorbing the effects of external shocks, particularly those related to fluctuations in energy markets and disruptions to global supply chains.

The initiative will maintain and strengthen several support mechanisms, specifically those related to stabilizing the prices of essential goods and services.

Direct Support to the Compensation Fund

According to clarifications made by the authorities, a significant portion of these funds will be directed towards the Compensation Fund to preserve the stability of butane gas and transport prices.

The government aims to limit the direct impact of rising international costs on households by maintaining certain tariffs at a stable level despite pressures from global markets.

A Budgetary Effort Amid Tense International Context

This decision arises in a global economic environment characterized by significant uncertainty, particularly due to geopolitical tensions and the volatility of energy prices.

Morocco, which heavily depends on oil and gas imports, remains exposed to fluctuations in international markets, making the adoption of stabilizing budgetary measures essential.

Maintaining Social and Economic Stability

Beyond the financial aspect, this allocation aims to preserve social stability by preventing an excessive rise in the cost of living.

The government thus seeks to strike a balance between supporting purchasing power, managing public finances, and continuing the economic reforms initiated in recent years.

A Strategy for Budgetary Protection

This measure is part of a broader crisis management strategy already implemented by the government during previous episodes of inflationary tension.

The stated objective is to strengthen the resilience of the national economy while continuing the trajectory towards a gradual reduction of the budget deficit and stabilization of public debt.

Towards Better Management of Future Shocks

Through this initiative, the authorities also aim to improve the budget’s ability to anticipate external shocks, whether they are energy-related, climatic, or geopolitical.

This approach confirms Morocco’s commitment to combining immediate social protection with the maintenance of budgetary discipline in the medium term.